Decision Maker: Cabinet, Council

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: February 11, 2026

Purpose:

Content: Decision   RESOLVED that Cabinet:   1.1)  recommended to Council that the council tax levy for 2026/27 be increased by 2.99% equivalent to £6.28 for an average Band D property. 1.2) recommended to the Council that the total Council Tax levies for 2026/27 (see table 2), which amount to £11,540,758 be utilised as follows: • An amount of £9,328,807 is utilised to balance the Council’s 2026/27 General Fund budget. • An amount of £2,211,951 is used to pay Town and Parish Council requirements. 1.3) recommended to the Council that the special expenses as proposed in paragraph 7.2 (tables 3 and 4), are incorporated in the Council Tax setting.   Reasons for decision   To enable the Council to set a balanced budget for 2026/27 before 11 March 2026, which is a requirement of the Local Government Finance Act 1992 (LGFA 1992). To include the Parish and Town Council levies in the total Council Tax levies for Hertsmere.   Alternative Options Considered   As noted above it is a statutory requirement to present a balanced budget, whereby the net budget requirement or gross spend on service provision less income from rents, fees and charges, specific grant funding and other contributions is balanced by an equivalent level of funding.   The proposed revenue budget 2026/27 presented showed the net budget requirement of £18.3m being funded partly from core government grant funding totalling £8.9m with the remaining £9.3m of our funding coming from local Council Tax levies.   In balancing the 2026/27 budget, the Council has used a combination of realised efficiency gains, increasing fees and charges, utilising the Council’s asset base to generate income, specific grant funding and a proposed 2.99% increase in Council Tax, equivalent to £6.28 for an average Band D property, which is the subject of this report.   The Council could have considered further efficiency measures or service changes or could consider utilisation of its reserves, albeit this would be a one-off use: • Utilisation of General Fund Balance - The Council has approved a policy to maintain the current level of general funds in real terms. As a result, the use of General Fund reserves to balance the revenue budget will be contrary to what has been agreed by the Council. Although the Council can utilise its general fund balances to help balance its budget, it would be imprudent as this is a finite resource that is typically used for exceptional one-off contingencies. • Utilisation of Earmarked Reserves - Earmarked reserves are held for specific purposes and not to fund the revenue budget deficits.